AdBlue supply fears spark action

Incitec Pivot says it will do all it can to increase AdBlue supply over the next few months amid fears of a transport crisis due to a shortage of the fluid. The diesel exhaust fluid is based on urea and de-ionised water, and global supplies of urea are tightening as China closes off exports. The National Road Transport Association has reported fielding calls from members reporting retail shortages of the fluid, which ensures diesel-powered trucks comply with national emission standards. Minister for Industry, Energy and Emissions Reduction Angus Taylor said today he had been tasked to lead a coordinated whole-of-government effort to ensure reliable and ongoing supply of AdBlue in close cooperation with industry. “I can assure Australians that the Government is working to ensure we do not face any shortages. We are pursuing a range of measures to address global pressures in the urea market," he said. "We will keep our trucks running and Australian motorists on the road.” Technical constraints to boosting IPL production Incitec Pivot supplies about 10 per cent of the Australian market for AdBlue solution and is the only Australian manufacturer to make the solution from urea melt. "We are fully committed to supplying our domestic customers’ requirements," a company spokeswoman said. "While our ability to increase production is limited due to technical constraints, we are currently investigating increasing our AdBlue solution capacity, and will do all we can to increase supply over the next few months." The company produces fertiliser grade urea (used by Australian farmers) at its Gibson Island plant in Brisbane, and a very small proportion of urea used to make AdBlue solution. Even that production is set to cease at the end of 2022. The company last month announced it would 'reluctantly' cease manufacturing at Gibson Island at the end of next year after exhaustive efforts were unable to secure an affordable long-term gas supply from Australian gas producers. Federal Member for Kennedy Bob Katter this week joined the calls of national transport groups for the Prime Minister to intervene urgently to secure Australia‘s supply of AdBlue. Mr Katter said that without AdBlue all of the major road trains and trucks in Australia would be off the roads by the end of January. Also at crisis point will be most of the agricultural sector and other industries that had diesel vehicles that required this emission reducing additive. “Federal Government must provide immediate grants to manufacturers, such as Incitec Pivot, to enable the local production and supply of urea," Mr Katter said. Minister for Industry, Energy and Emissions Reduction Angus Taylor. Mr Taylor said Australia currently had normal levels of stocks to hand of AdBlue, with more refined urea stocks on their way to Australia. There were more than 15 million litres of AdBlue supplies on hand, equivalent to close to five weeks of business-as-usual demand, he said. The shipments of refined urea currently on their way to Australia were estimated to provide more than two weeks of additional supply to the market. Mr Taylor said advice provided to the Department of Industry, Science, Energy and Resources from AdBlue manufacturers was that this is within range of normal stockholding levels. “We are quickly and actively working to ensure supply chains of both refined urea and AdBlue are secure so that industry can have certainty on their operations,” Mr Taylor said. “Global supply pressures, stemming from increased domestic use in China, have led to international issues in securing refined urea, which is key to producing AdBlue. This is exacerbated by the global shortage of natural gas, the essential ingredient used to make urea." Mr Taylor announced the establishment of an AdBlue Taskforce to develop solutions to any potential future supply constraints. Options being explored include alternative international supply options for refined urea, bolstering local manufacturing capabilities and technical options at the vehicle level. Trucking group calls for transparency on supply Australian Trucking Association chair David Smith said the supply of AdBlue was as important as the supply of fuel. "We need transparency about the stocks of material that are in Australia and the ability of suppliers to deliver the AdBlue we need throughout the first half of 2022," he said. “The Australian Trucking Association has been told that the supply of AdBlue is uncertain beyond February 2022. Some suppliers are in a better position than others. “We are already seeing suppliers restricting orders or raising prices. “The ATA will continue to press the Government for action and transparency until we are certain that we can continue delivering the groceries on every supermarket shelf and Australia’s exports to our ports.”

AdBlue supply fears spark action

Industry Queensland

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